Exclusive Resorts, Quintess, and BelleHavens have implemented deposit increases in the context of significant membership changes. Quintess announced a side fund to expand its development and acquisition of new homes, and BelleHavens chimed in with a similar plan.

BelleHavens was first in the wave of summer price increases. A membership deposit increase last month coincided with their 100th member announcement. All new membership levels were tacked with an additional $25,000 as the club announced eleven new destinations.

Quintess then bumped its pricing as well. The club’s lowest plan (15 nights annually with no holiday usage) grew from $179,000 to $195,000. Their highest tier (60 nights annually, with holiday rights) is now $790,000.

Similarly, Exclusive Resorts has notched up its rates as much as $34,000 for new members, and bumped annual fees effective August 1st (see table below). Though Exclusive Resorts currently employs a waiting list for new members, those who commit now will receive the lower rate.

Exclusive Resorts has engaged in a charm offensive with current members to ensure that availability issues are firmly under control. The company’s recently-released survey shows higher satisfaction among members, a statistic that the company carefully monitors.

Why raise prices? Because they need to, and because they can.

It’s a trend among destination clubs to increase membership deposits with club expansion. The increases enhance financial stability and provide the resources to improve member services and grow the roster of homes. Remember that the destination club industry is still relatively young, and many clubs are just now seeing how the reality of the hospitality business may not have aligned with the spreadsheets of their initial business plan. That’s to be expected. In the private jet world, pioneer NetJets launched over twenty years ago and has only recently established a viable roadmap for sustained profitability. By comparison, most destination clubs are making excellent progress in firming up their business model.

The Helium Report Decision Guide to Destination Clubs discusses the cost and structure of the club model. It includes a list of key due diligence questions to help you assess the financial strength of a club you’re considering and the trajectory of future price increases.